Economists warn that the US debt is unsustainable and needs to be reduced.

The National Debt: A Ticking Time Bomb

Experts are warning that the growing national debt is on an unsustainable path and must be reduced to avoid long-term damage to the U.S. economy. The current national debt stands at a staggering $31.4 trillion, which is the statutory borrowing limit. The Congressional Budget Office forecasts that the debt will reach $114 trillion in the next 30 years, which would be 200 percent of the country’s gross domestic product.

The Urgent Need for Action

“With respect to interest rates and soaring debt, we are sitting on a ticking time bomb. Congress should be working diligently to avert an otherwise-inevitable debt crisis,” warns Brian Riedl, a senior fellow at the Manhattan Institute for Policy Research. Jason J. Fichtner, vice president and chief economist at the Bipartisan Policy Center, confirms that assessment, stating that “the nation’s debt is on an unsustainable trajectory, and action must be taken now. Further delay will only make the problem worse and the necessary corrections more harmful to the country and to the most vulnerable in our society.”

The Debate Over the Debt Limit

The debate over the debt limit has resulted in a standoff between House Speaker Kevin McCarthy and President Joe Biden. McCarthy insists that an increase in the debt limit must be accompanied by spending cuts, while Biden has called on Congress to increase the debt ceiling without prior conditions.

The recent subcommittee hearing, titled “The Default on America Act: Blackmail, Brinkmanship, and Billionaire Backroom Deals,” appeared aimed at excoriating the Limit, Save, Grow Act, which was recently passed by the House of Representatives. The measure includes a temporary increase in the nation’s debt ceiling along with spending cuts and caps, the rollback of certain green energy tax credits, and the easing of restrictions on drilling for oil and gas.

The Need for Bipartisan Effort

Most witnesses at the hearing focused on the need for an immediate bipartisan effort to raise the debt ceiling in order to avoid short-term damage to the economy and address the rapid growth of the national debt to avoid a catastrophic crisis. Senate Budget Committee Chairman Sheldon Whitehouse (D-R.I.) sharply criticized the bill, saying it would cost 790,000 jobs, shrink the economy by $141 billion in one year, and put 21 million Americans at risk of losing their health insurance, all while preserving tax cuts for the wealthy. However, Whitehouse also emphasized the need to raise the debt limit without causing harm to the most vulnerable in society.

The Bottom Line

The national debt is a complex issue that requires immediate attention and bipartisan cooperation. The consequences of inaction are dire, and the time to act is now. We must raise the debt limit without causing harm to the most vulnerable in society and work towards reducing the national debt to ensure a stable and prosperous future for all Americans.